WASHINGTON - A proposal to let bankruptcy judges cut mortgage rates for struggling borrowers would "make matters worse," industry groups said as Senate Democrats scrambled to round up enough votes to pass the measure today.
The Financial Services Roundtable, the American Bankers Association, and 10 other organizations, in a letter to senators, said the bill, which is backed by
The Democratic effort was set back last week when federal credit unions refused to endorse the measure.
"Opposition remains in both parties," said Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable. "The bill has a tortured past and it is an uphill battle to get it passed."
The so-called cram-down legislation, which passed the House in March, has stalled in the Senate amid industry and lawmaker opposition.
Negotiations are continuing, and Republicans and some Democrats, including Senator Mary Landrieu of Louisiana, are considering opposing the bill, which needs at least 60 votes to avoid a filibuster.
